tv First Business FOX November 24, 2009 5:00am-5:30am EST
behind on their payments. plus, trading snow levels....how some investors hope to profit from the upcoming winter weather. and...ahead of the holidays...we talk to one of the inventors of pictionary.....why he says the recession has been good for the board game industry - those stories ahead on this edition of first business. stocks moving higher... ahead of the thanksgiving holiday... dow, s&p and nasdaq.. all trying to hang onto 2009 highs... just as we head toward the end of the year. i am just completely fixated on the go train right now which of gold gold $1,165 an ounce now and 2300 what you think about that incredible fisheye still their we're gonna talk about and tried to talk and this week with jim packwood housing data on tuesday we get a check-up on home prices they have been rebounding in the past few months. new data on housing out this week... so far.. indications
point to the homebuyer tax credit extention may be working... after we saw a boost in existing home sales... and on tuesday... another check up on how home prices are holding up. money is made and lost with every major snow storm. the people who own ski resorts cheer, while homeowners who have to pay for snow removal are not so cheery starting next month, some people will have an opportunity to cover thr loss whenth blizzards begin. the next time a major snow storm hits, some cities will be hedged on the cost of salting and plowing the streets. starting december 7th, cities and big institutionalplayers will be able to trade options and futures contracts on snow through the cme group. "for exampl the city of chicago last year spent about 27 million on snow fall removal, this year they only want to budget for around 20 million.// the 10 year average is around 55 inches of snow the city of chicago only budgets for 40 inches of snow, that tells you they have not budgeted enough so what they need to think about is how to have the
funds toedge." felarabello is e group director o oalternate the c earlier launched threats --- so goi io sno is that big of a sch. cme gup will offer two contracts s wi the binary option, if theinvestor inks it's going to snow20 incheshis winter and buys a 20 inch option, the invtor collects mon for making the coect pricti if it ows exactly thatuch. if he guess is wrong, the investor loses the premium papa forthe when annvtor hedges with a futus contract based on a 20 ch snoll the value o the contract rises and falls with the actual precipitation. if it snows more than 20 inches, the contract becomes more valuable; less of the white stuff and the investor loses.
timing is everything. with the struggling economy and many cities in deep financial trouble, carabello suspects municipalties may use the snow trade as a hedge to cover city services., "one of those services is snow fall removal. they have to creatively make a way to make up these shortfalls in funds so this is one of the ways they can definitely do that. " snow fall levels will also be recorded at new york's laguardia, minneapolis/st. paul, and detroit metro airports. yes in 2006 there were snowfall contracts from central park in new york and boston logan international airport. the hope is these contracts will be more successful because the new locations.
time never tried to talk we have been the design of traders audio we have lots of economic data on the shortened holiday week revised gdp number for the third quarter home price index do you see economic news continuing to power stocks? we do and what was one of the major bullish contributors to yesterday in monday trading session. was the home sales numbers that we received early giving us a little bit of a both better than expected but traders were looking for to this job that of jobless clients number does expect on wednesday one
day early with the holiday and will papain is really what seems to be well were focused on right now. of course a black friday kidding of the holiday shopping season began investors will pay close attention to how those numbers coming in the question i think that we're gonna be looking to see that to give it a little bit of a lead on the retail sector can expect coming into the holidays the market will take a leave from that whether we see the senate calls raleigh come through or not we would definitely one of the controlling factor will be
dictated by the number that comes true. o continuing on as many street some traders on our show of called a bubble you agree? tough to say at this point i really not want to get in front of a trading market in gold is definitely a trading high year has had weak equities the weak dollar right now i think is still in age of concern i been forcing the money going to go to concern that in terms of four. doesn't become ohm a drawback of some of the other metal some of the other equities i really feel like 1500's what they're looking for at this point in the guinness tough to say at this point but i would be one to get in the way of the mood is the high energy and certainly is continuing in a vertical fashion to the upside. 1500's still a long way to go for gold. in so much been a star in a traders audio.
new numbers show consumers are getting a better handle on their debt... recently americans have been paying off their credit cards at a faster rate.. ezra becker / with transunion - talk about this trend national credit card delinquency rate... 90 days or more late - dropped to 1.1% down almost 6% over the previous quarter trend is still flat compared to a year ago why is this significant? it's a we normally see an uptick as people pay off their student that in their vacations. this year we see a downtick for the first time in 10 years. the change in direction is important. in case the consumers are training their papers. this is something we've been talking about what the recession as consumers feel the pinch of the liquidity they know their credit markets are the most important effect they have. we also see the national savings rate go down from a high of 7% in may to approve% in september from is this a trend that that is one to american consumer is have a short memory the caribbean -- ward customers to be pinned down their debt or forcing their liquidity to the sense they have to draw on their savings to make any. we've seen some of the credit-card training fees that the last-minute raising interest rates ahead of the changes going into affececinebary and 22 and how do you see that playing out at the uc consumers continued to react to that in the coming months? with the new friend read that the law will dictate foreign lenders is going to be a different dynamic altogether. in terms of how credit-card lenders are want to in their products by borrowers. consumers are concerned about losing products that they have thus well as we still have a tough economic times in a need to make is we need to keep those relationships healthy be the big part of the day no interest rates are going to be higher if it the years to come? i think all of them have seen increases in interest rates and it
recognized that keeping the credit card of the death called the plan rate or automobile is to wait to meet in bed in sneeze from paycheck to paycheck or unemployment thank you so much of which france you intended for your insight. still to come the man who helped invent pictionary talks about new industry... and the companies behind them. healthcare system..that's coming up next. now that it appears the senate's health care proposal will head floor... there are still big challenges ahead... especially with republican.. and even some democratic lawmakers opposed to the current proposals.. in both the house and senate. and there's debate among health care experts about whether congress is missing the mark with the current reform ideas. robert kaestner, ... professor institute of government and public affairs - uic - here to talk about some other.. perhaps more easier solutions to fixing health care. so both the health house and senate proposal includes complicating reforms is up to debate whether it is necesry with one you talking about? the subsidies to people with low and, necessarily too low of two
porter percent of poverty $88,000 a bearpaw complicated to dr. david lett made it mandated what insurance companies can charge people they specify what types of insurance plans will be susceptible they have to be quite generous and if you want to be a low-cost insurance plan would be susceptible to the government after reform. what about the idea of these insurance exchanges? is that necessary? they have existed before they have been very successful item think it'll be very important is a very political power of the reform because of the public plan. whether the government will have its own insurance plan and whether it will be negotiate on a equal fair playing field. let's talk about some of the solutions to you are proposing the you believe could help better the situation first of all expanding medicaid to cover people ketubah% of the poverty level so essentially a family
of four making of the $44,0 ould potentially be eligible for medicaid under your proposal. expansion of medicaid is both the house and senate plans right now the house will expand to 100 1/5 percent of poverty the senate 130 percent of poverty importantly of the current reform proposals the states will have to pay part of that bill. my suggestion is to move up to 200 percent of property of the federal government bear the entire cost of that. that will cover about 0.5 million people which is half the uninsured right now is a very simple thing that builds on existing system. how'd you pay for it all in a guest in exsolution right? currently the federal govnment gives aw $300 billion because it does not tax employer sponsored health benefits. if the government eliminated the tax exemption it could drawdowns on the 300 billion of hundred hundred billion to pay for the expansion of medicaid simple solution that
does most of what the government wants to do without adding complication. let's explain what proposing here essentially employees work for a company did benefits to their company run on those benefits are not taxed right? if you're a typical health plan for somebody like yourself if this and h. m. o if you were going to receive their wages you would pay some fraction 2025% of income tax on the 5000 right now the tax. we will eminate the taxe the vernment would collect how does that expepeeat as a player in margolis dollars of my pocket? it won't affect you at all because you really pay for it anyway to lower wages ve to know you probably switch to lower-cost plan go to the hmo with the machine that works best bet very beneficial because in the long run how does that affect companies at all? the company is in effect because the employer pays for their
health insurance now that paid below wages with higher benefits in. if that competitiveness of the company won't be affected employee should support this type of plan, the me quickly ask you what about the proposed ways to pay for curley that's been proposed and house taxing the wealthy in the senate taxing medicare pay for on the wealthy of these the weight right way to go about it? the senate plan as much before because a set of eliminating the taxes and before health benefits they tax hi about the cost of high-cost insurance plans. do a tax on insurance that is very indirect way but it's part of the solution especially in this economy raising taxes would be a bad idea the house bill although it's going to be on wealthy people is still raising taxes and that would adversely affect the economy. thank you so much robert professor at university of illinois at